The artist has donated the full amount of his twenty-five thousand pound Mercury Prize cash to the Music Venues Trust, which works to protect the UK's independent concert spaces.
The star was presented with the award on 16 October as his latest record People Watching was named the outstanding release of the past year.
The musician has decided to give the cash to the trust, in acknowledgment of the crucial part grassroots venues had in his early career.
"I couldn't be pursuing my current career if it wasn't for all the gigs I did around the region, and elsewhere, when I was starting out," remarked Sam Fender. "These venues are renowned, but they are in difficulty."
Since the start of 2023, more than 150 of these spaces have shut down – approximately 16% of the entire UK sector.
Over the past year, major artists including Pulp, Coldplay, Katy Perry and Sheeran have all supported the trust in its initiatives to keep the scene afloat, by adding a minor surcharge to their ticket costs, which supports smaller concert halls.
Fender also joined in, collecting in excess of £100,000 on his 2024 arena tour to help thirty-eight small stages across the UK.
The donation helped venues that were dealing with imminent closure due to difficulties stemming from water damage, blazes and family tragedies, as well as regulatory hurdles, legal disputes and sound issues.
Additional spaces were granted financial assistance in upgrading infrastructure and sound and lighting systems that helped musicians and fans.
"The idea that funds from performances in big venues helps the local stages, where it all starts for musicians like me, is just logical," Fender has commented.
Fender is not the first artist to give his award prize money to good deeds.
In Pulp won the award in 1996 for their record Different Class, frontman Cocker stated that the band would contribute their winnings to the charity the charity.
In 2002, rapper and singer she divided her bounty across several good causes, like the NSPCC and a Sickle Cell organization.
"Additionally, I donated a £1,000 to the center, to their gymnastics program, because I did gymnastics when I was a child and they lacked better apparatus," Ms Dynamite told the media.
Two years ago, Ezra Collective contributed their winnings to the local youth club that nurtured their band, as well as other independent music bodies.
And winners that year they contributed their winnings to a multiple sclerosis charity after a close contact was found to have the condition.
"Receiving the award was quite enough," remarked artist Small. "The money was the bonus but we didn't need the extra, because we had the main prize. So our success touched somebody else's life."
Recently, the trust announced it had saved two grassroots venues in south-east England, by bringing them into local control.
The Joiners in the city and the second in Bristol were bought under the community ownership program, which is supported by Arts Council England and supporters who buy "shares" in the properties.
